Fashion retailer N Brown's (BWNG) shares staged a mini recovery following a far better than expected third quarter update. Group revenues rose more than 4 per cent over the last 18 weeks of 2016, with product revenue up nearly 6 per cent. Financial services revenues (customer credit) fell, but only by 0.5 per cent.
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A fortnight of online promotions ahead of Christmas helped drive this growth, and the promotional activity means margins will fall between 100 and 150 basis points over the course of the financial year. Regardless, the top-line progress marks a significant improvement on the preceding two quarters.
